OBJECTIVE 01

SAFETY PERFORMANCE

GOALS

TARGET YEAR TO DATE

0 2.0

Zero Recordable

Incident Rate

OBJECTIVE 02

MAINTAINA STRONG FINANCIAL POSITION

TARGETElectric System Liquidity >= $155MM $226.4MM

TARGET

>= 3.6% 3.2%

TARGET

<= 63% 62%

TARGET

>= 1.80X 1.96X

Consolidated Return On Net

Assets

Consolidated Debt To Plant

Ratio

Consolidated Debt Service

Coverage

PROJECTION

PROJECTION

PROJECTION

PROJECTION

OBJECTIVE 03

PROVIDE LONG TERM LOW RATES

TARGET

Retail Operating

Ratio ‐ Adjusted

<= 114% 109%

TARGET

<= 100.0% N/A

TARGET

>= AA3 (Moody's equivalent)

AA3

"Peer Group of Excellence" Rate Index

Ratio

District Credit Rating

PROJECTION

PROJECTION

PROJECTION

OBJECTIVE 04

PROVIDE OUTSTANDING

SERVICE TO OUR CUSTOMERS

TARGETAverage System

Availability Index (ASAI) >= 99.97% 99.99%

TARGET

< 150 min 122 MIN

TARGET

>= 85% TBD

TARGET

12/12 Mo's 10/12 Mo's

Customer Average

Interruption Index (CAIDI)

Retail Customer

Satisfaction Survey

PRP Total Availability

YEAR TO DATE

PROJECTION

PROJECTION

YEAR TO DATE

OBJECTIVE 05

OPERATE RESPONSIBLY

BY ATTAINING ENVIRONMENTAL,

CULTURAL RESOURCE AND REGULATORY

COMPLIANCE

TARGETFinancial Statement Audit Performance Unqualified

Audit Opinion TBD

TARGETWA State Audit

Office Compliance Audit Performance No Audit

Findings

No AuditFindings

Zero Violations

Zero Late Filings

TARGETFERC / NERC / WECC Electric Reliability

Compliance Performance NO

TARGETSafety, Health, Cultural Resource

and Hazardous Material Performance YES

TARGETTimeliness of All FERC and Regulatory

Filings YES

TBD

PROJECTION

PROJECTION

PROJECTION

YEAR TO DATE

YEAR TO DATE

OBJECTIVE 06

DEVELOP A SUSTAINABLE BROADBAND

NETWORK

TARGET PROJECTION

>= - 4.1 % -4.3%

Return on Invested Capital

PROVIDE LONG TERM LOW RATES

OBJECTIVE 03

PROVIDE OUTSTANDING SERVICE TO OUR CUSTOMERS

OBJECTIVE 04

OPERATE RESPONSIBLYby Attaining Environmental, Cultural Resource and Regulatory Compliance

OBJECTIVE 05

DEVELOP A SUSTAINABLE BROADBAND NETWORK

OBJECTIVE 06

SAFETY PERFORMANCE GOALS

OBJECTIVE 01

MAINTAIN A STRONG FINANCIAL POSITION

OBJECTIVE 02

2018 INTERIM TARGETS

2018 TARGET

Electric System Liquidity

Consolidated Return On Net Assets

Consolidated Debt To Plant Ratio

Consolidated Debt Service Coverage

>=$155 MM

>= 3.6%

<= 63%

> 1.80X

$226.4 MM

3 .2%

62%

1.96X

Average System Availability Index (ASAI)

Customer Average Interruption Index (CAIDI)

Retail Customer Satisfaction Survey

PRP Total Availability

>= 99.97%

< 150 MIN

>= 85%

99.99%

12/12 Mo's

122 MIN

TBD

10 /12 Mo's

Financial Statement Audit Performance

WA State Audit Office Compliance Audit Performance

FERC / NERC / WECC Electric Reliability Compliance Performance

Safety, Health, Cultural Resource & Hazardous Material Performance

Timeliness of All FERC and Regulatory Filings

UNQUALIFIEDAUDIT OPINION

NO AUDIT FINDINGS

NO AUDIT FINDINGS

ZERO VIOLATIONS

ZERO LATE FILINGS

TBD

TBD

NO

YES

YES

Retail Operating Ratio ‐ Adjusted

"Peer Group of Excellence" Rate Index Ratio

District Credit Rating

<= 114%

<= 100.0%

>= AA3(Moody's

equivalent)

109%

N/A

AA3

>= -4.1% -4.3%

Zero Recordable Incident Rate 0 2.0

PROJECTED

Return on Invested Capital

Powering our way of life.

Operate Responsibly by Attaining Environmental, Cultural Resource and Regulatory Compliance

Fish and Wildlife Quarterly Business Report

Grant PUD Commission MeetingDecember 11, 2018

Business Unit Purpose & Goal

The Fish and Wildlife Business Unit uses technology, innovation, strategic thinking, good stakeholder relations and skilled negotiations to ensure we are achieving compliance with our Natural Resources regulatory requirements in a safe, cost efficient and biologically sound manner while helping to maintain the long-term financial health of the District.

2018 Business ReviewSafety

No Recordable Incidents during Q1-Q4 - 2018;

A total of 437 Job Briefs (as of 11/26/18);

A total of 66 Job Site Reviews (as of 11/26/18); Goal =10%. Currently at 13.4%;

Overall Safety Meeting Attendance = 100%.

Fish & Wildlife Business Unit has completed reviewing and updating 5 Job Hazard Assessments (JHAs) for critical tasks during 2018;

25.0%

8.0%

10.5%

8.9%

24.4%

35.5%

16.0%

16.0%

8.3%

13.5%

26.7%

13.4%

-10% 10% 30% 50%

JanFebMarApr

MayJunJul

AugSeptOctNov

TOTAL

Job Site Reviews – Updated 11/26/18

2018 Business Review Regulatory Compliance

File Boundary Adjustment for Nason Creek Acclimation Facility with FERC (On Hold);

File twenty-eight annual reports and plans with various agencies;

Completed, Submitted or in Consultation• Annual Progress & Implementation Report (to

FERC)• Bull trout annual report• White Sturgeon annual report & 10 year review• Pacific Lamprey annual report & 10 year review• Native resident fish report and 10 year review• Gas Abatement Plan• Transmission Line Collision Protection• Bald Eagle Perching/Roosting Protection Plan• Draft Northern Wormwood Conservation Plan• Wanapum Drawdown Mitigation Proposal

File thirteen reports related to mitigation sites;

Priest Rapids Project

FERC License

NMFS2008

Biological Opinion

WADOE 401

Certification

USFWS2008

Biological Opinion

Hanford Reach Fall Chinook

Protection Program

Priest Rapids Salmon and Steelhead Settlement Agreement

2018 Accomplishments Program/Project - Accomplishments

Successful implementation of first 10 years of FERC License

Achieved juvenile steelhead performance standards (>86.5%). Standards have also been achieved for yearling Chinook, sockeye and coho;

Reached long-term agreement with Yakama Nation and Priest Rapids Coordinating Committee on coho and performance standard schedule for above species (5 to 10 years);

Reduced No-Net-Impact (NNI) Fund Contributions by $403,420.40 annually for the term of the license for achieving steelhead standards;

10 year agreement reached with Priest Rapids Fish Forum on Adult Pacific Lamprey NNI;

Wanapum Food Fish Bill signed by Governor Inslee. Allows Wanapum to fish for other freshwater food fish for ceremonial and subsistence purposes.

2018 Accomplishments Program/Project - Accomplishments

Finalized 10 year Total Dissolved Gas Compliance Report and secured approval from Washington Department of Ecology;

Achieved Hatchery Production requirements by releasing ~8.3 smolts;

Developed Facility Use Agreements (FUA) and Interlocal Agreements that require users of District facilities to adhere to the District’s Safety and Security requirements. FUA’s also include a fee reimbursement structure for materials, directs and labor.

Reduced frequency of white sturgeon natural production monitoring;

Implemented Vegetation Management Program

Draft Northern Wormwood Conservation Plan (in consultation);

Successfully implemented a LEAN Initiative (FW Warehouse)

2018 Business Review2018 Allocated Resources

Staffing – 15 FTRs & 10 FTEs FWWQ Manager (1 FTR)

Wanapum (0.5 FTE) Project Specialist IV (1 FTR) Hatchery & Habitat (6 FTRs)

3.0 FTEs Anadromous & Resident Fish (5 FTRs)

3.5 FTEs Wildlife/Botanical (2 FTRs)

3.0 FTEs

Budget Operation & Maintenance = $12,911,095 Capital = $563,180 Labor = $1,972,625

2018 Total Budget $15,446,901

Net Decrease from 2017 = 1.0%

Operations and Maintenance = 83.6%

Labor = 12.8%

Cap = 3.6%

2018 Business Review – Allocated Budget

Category Budget

Actuals ($)For Month Ending

10/31/18Year-End Projection

($)Year-End Projection

(%)

O&M $12,911,096 $8,167,343 $12,947,248* 100.3%

Capital $563,180 ($137,345) $700,525** 124.4%

Labor $1,972,625 $1,580,319 $1,731,278*** 87.7%

Total $15,437,352 $9,610,317 $15,379,051 99.6%

*Projected to be overspent by ~$37K. Overspending was due to outstanding costs associated with the 2017 survival evaluation. The District received 2 invoices from the vendor for acoustic tags. **Projected to be overspent by $137,345. A majority of the overspending is directly related to contractual requires per the hatchery sharing agreement with DPUD (Wells Modernization). ***Underspent due to the time required to backfill FW Specialist Positon. Also labor savings realized with reduce effort necessary to count fish and reduced overtime usage.

2019 Business Forecast Develop a cost-effective and biologically sound approach to achieve No-Net-

Impact for summer subyearling Chinook (Reduce or Eliminate NNI Contributions & Modify Survival Evaluation requirements 2020, 2021 & 2022);

Present proposal to PRCC to recalculate the NNI fund for summer subyearling Chinook;

Present proposal to PRCC to defer summer subyearling Chinook to out years due to technology and life history strategies;

Explore other means to achieve summer subyearling requirements (hatchery, habitat, concrete only evaluations, etc.)

Evaluate potential cost-effective and biologically sound strategies to control costs for hatchery operation, maintenance, monitoring and evaluation programs (primarily PR Hatchery);

Analysis is substantially complete and MAY illustrate a cost savings.

FW staff developing a memo discussing potential strengths, weakness, opportunities and threats (SWOT);

2019 Business Forecast Complete engineering alternatives analysis and develop the necessary permit

level designs to address Carlton Acclimation Facility Intake Structure issues.

Summer Chinook Acclimation Facility – Methow River.

~182K summer Chinook are acclimated overwinter at this facility

River channel is migrating away from facility intake.

Evaluate Priest Rapids Hatchery well field and develop a recommendation/plan on how to rehabilitate the existing well field.

Fall Chinook Facility – 5.6 million for the District and 1.7 for US Army Corps of Engineers

Three of the eight wells were inoperable during a majority of the timeframe when the Priest Rapids reservoir was operated at lower elevations as required for Priest Rapids Spillway work/evaluation

2019 Business Forecast Ensure that safe measures and fixes are completed at the Priest Rapids

Hatchery;

Engage members of the Priest Rapids Fish Forum to address outstanding stocking rates for juvenile white sturgeon;

Develop strategy for hatchery recalculation (2023);

Develop cost effective and biological strategy to address future requirements related to the White River Spring Chinook supplementation program (2026);

Develop and implement strategy for ensuring that avian predation outside the project area is addressed by federal entities;

Revegetate areas affected by the fires in 2018 (e.g. Airstrip site by Vantage).

Powering our way of life.

Quarter 4 Commission Update 12/11/18

Powering our way of life.

Power Production:Cultural Resources

2018 Q4 Business ReviewMajor Projects & Work Activities

• Safety performance

• We continued our consultation effort with the Wanapum regarding potential effects of the PR right bank project on the Wanapum Indian Village.

• Wanapum are completing their project-wide Traditional Cultural Property review.

2018 Business Review

2018 Budget Actuals - 10/30 Q3-YEP

CAP $ 90,000 $0 $0

O&M $ 1,147,065 $884,547 $ 1,016,529

Labor $ 1,914,797 $1,255,848 $1,586,083

OT $ 41,200 $36,349 $44,337

2018 Labor Budget Actuals - 10/30 Q3-YEP

Regular $ 1,155,590 $796,743 $996,364

Other $ 718,007 $422,756 $545,381

OT $ 41,200 $36,349 $44,337

2018 Q3 Work Completed

• PR Tailrace fire survey

• Completed report on PR MOP zone as an addition to the Historic Properties Management Plan. Because the resources are in the MOP zone, there is essentially no additional burden related to management costs.

• With acceptance of Task 6, we’ve completed requirements for the District PA for Cultural Resources that was initiated on license issuance.

2019 Q1 Forecast

• Continuation of TCP delineation and effects mitigation plan

• Continuation of Priest Rapids Right Embankment work

• Task 6 resource monitoring implementation

2019 ForecastUse of Allocated Resources

• Staffing – We’re bringing in a short term, temporary language technician to help organize the language program curriculum.

• Three Wanapum student helpers will be back for the winter break. They’ll be working with the museum traditional program.

2019 ForecastPotential Management Challenges

• In early Q1, 2019 we’ll begin negotiations with Tribal groups, state and federal agencies regarding mitigation of project-related adverse effects to archaeological sites and Traditional Cultural Places.

• Consultation on PR Right Bank effects to historic resources, including the configuration of the earth fill and the Milwaukee railroad bed.

Questions ??

8

Corporate Governance in the Public Sector

Laurie TishPartnerMoss Adams LLP

December 11, 2018

Agenda

• Background and Implication to the District

• Risk management

• Internal control considerations

• Board (Commission)/ audit committee roles and responsibilities

• Best practices

1

Corporate Governance

• Backgroundo Sarbanes Oxley Act of 2002 established the Public Company Accounting Oversight Board (PCAOB) Applies to public companies and their auditors Established new roles for audit committees and relationship to auditors Trickle down effect to private companies and governmental entities

• Implication to Non-Public Companies and Municipal Entitieso Increased focus on corporate governance Establishment of Audit Committee Understanding of risk management and internal control considerations

o Relationship to auditor should be considered Audit partner rotation Board approval of auditor services More interaction with auditor

o Potential for additional laws and rules for non-public companies to be developed At state level (statute and rules) Capital Market pressures/Rating agencies

2

Risk Management for the Board and Audit Committee

“Risk management is a dynamic process, a chain of events that requires participation from all

stakeholders in a company – from board members to management to employees on the

front line.”

Corporate Board Member Magazine

3

What are the Risk Management Fundamentals?RISK

Risk is the uncertainty that is inherent in the range of possible outcomes (losses or gains)

which occur as a result of the choices and decisions required throughout an extended

enterprise.

RISK MANAGEMENTMechanism that creates stability in the organization by enabling the identification, prioritization, mitigation and

measurement of the implications of each decision.

INTERNAL CONTROLA process, effected by an entity’s board of directors, management, and other personnel,

designed to provide reasonable assurance regarding the achievement of objectives• Effectiveness and efficiency of operations

• Compliance with applicable laws and regulations • Reliability of financial reporting

* Internal Control – Integrated Framework, Committee of Sponsoring Organizations (COSO) of the Treadway Commission

4

What are the Types of Risk?

Financial – primarily relate to risks and activities that impact the reliability of financial statements, financial reporting disclosures and other financial impacts

Operational – primarily relate to risks and activities that impact the efficiency and effectiveness of business operations

Compliance – primarily relate to risks and activities that impact adherence to applicable laws and regulation

Strategic – primarily relate to risks and activities that impact the achievement of an organizations business objectives. Often neglected area of risk, with potential for high return

* Internal Control – Integrated Framework, Committee of Sponsoring Organizations (COSO) of the Treadway Commission

5

How Do You Protect & Create Stakeholder Value?

• Risk management on an enterprise-wide scale includes multiple approaches to risk.

Extended Enterprise

RiskManagement

Strategic

Economic

Insurance

Business

ProcessCulture

Capital Markets/Treasury RiskMarket Risk, Liquidity Risk

Analytics & Modeling CreditAnalytics

Property, Casualty,Liability

Risk ManagementMulti-line, Multi-riskInsurance Products

OperationsCompliance

FinancialInternalControl

ProfitRecovery

CorporateEthics

Physical & Information

Security

Alliances

Regulatory

Strategy, Goals, Mission,

ObjectivesJoint Ventures,

Outsourcers, Third Parties

Federal, State and County Regs

Asset Protection Corporate

Compliance

Operational Risk

Management

Financial

Operational

Compliance

Strategic

6

Risk Management Architecture

• Risk management should be a key element of the overall governance architecture of an organization.

Validation, Challenge,

Assurance, & Support

Consulting Support

Internal Audit

CORPORATE GOVERNANCE

Operations ~Business Unit Management

Teams

Risk Based Decision-Making, Business

Planning & Capital Allocation

Risk Aggregation, Monitoring & Reporting

Priority Risk Issues & Mitigation Plans

Risk & Control Self-Assessment

Performance Indicators/Risk Metrics

Foundation / Infrastructure: Systems, Processes, Policies, Procedures

Corporate Risk Monitoring or Chief Risk Officer

Senior Management

Risk management

7

Risk Management Spectrum Board/Audit Committees should evaluate the profile of their organization against a spectrum of risk management criteria

• Chief Audit Executive reports directly to board/audit committee

• Audit committee duties include assurance of financial reporting quality as well as oversight of business risk

• Procedures or mechanisms are established and in place to identify and respond to crisis situations

• Use technology to monitor and report on critical risks and track the effectiveness of risk management efforts

• Risk analysis is included in annual business planning

• The adequacy of internal controls are evaluated regularly

• Audit committees meet independently with both the internal and independent auditors regularly

• Senior management cultivates a culture of ethical practices

• Internal and independent audit comments are acted upon and resolved in a timely manner

• Financially illiterate audit committee members

• Management not knowledgeable of the effects of risk in their organization

• Corporate culture that allows unethical practices

• Orientation and continuing education are required of directors to familiarize them with the business, trends and recommended corporate governance practices

• Risk and reward analysis is built-in to the decision-making process

• There is a systematic process for identifying, assessing, prioritizing and monitoring business risks and rewards

• Strategic, Operational and Process Self-Assessments are performed periodically

• Documented processes, roles, responsibilities and control procedures exist and are understood

• Risks are reported to senior management, the board and committees regularly

• Documented and current charters for internal audit, audit committee, board of directors and other executive committees that detail their responsibilities

• Board/audit committee members are independent and are financially literate

• Majority of directors on Board are independent

• Business objectives / potential risks are prioritized

• Undocumented or not current charters for internal audit, audit committee and board of directors

• Lack of senior management involvement

• Undocumented control procedures

• Unmonitored and unmanaged risk

ST

RO

NG

BA

SE

LIN

EW

EA

K

8

Risk Management for the Board and Audit Committee

“The audit committee should understand the corporation’s risk profile and oversee the corporation's risk assessment and management

practices.”The Business Roundtable

Principles of Corporate Governance

9

Internal Control and Compliance Considerations

Objectives:

1. Transactions are properly recorded and accounted for to –• Permit the preparation of reliable financial statements and federal reports

• Maintain accountability over assets

• Demonstrate compliance with laws, regulations, and other requirements

2. Transactions are executed in compliance with –• Laws, regulations and the provisions of contracts and grants

3. Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition

10

Internal Control and Compliance Considerations (continued)

Components:

1. Control Environment sets the tone of an organization influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.

2. Risk Assessment is the entity’s identification and analysis of relevant risks to the achievement of it’s objectives, forming a basis for determining how risks should be managed.

3. Control Activities are the policies and procedures that help ensure that management’s directives are carried out.

4. Information and Communication are the identification, capture and exchange of information in a form and time frame that enable people to carry out their responsibilities.

5. Monitoring is a process that assesses the quality of internal control performance over time.

11

Internal Control and Compliance Considerations (continued)

• Financial Systems:– Revenues, Cash Receipts and Receivables

– Cash Disbursements, Expenses, Liabilities

– Treasury and Investments

– Utility Plant and Capital Assets

– Payroll

– Budget

– General Computer Controls (access, change management, security)

• Administrative Systems:– Pertinent operating systems

– Federal or state/local grantor requirements

– Contracts, laws, lease and other agreement requirements

12

Board/Audit Committee Roles and Responsibilities

• Audit Committee roles can be performed by: o Traditional separate committee comprised of Board members

o Separate committee comprised of Board members plus outside appointees and/or senior management

o Board of Commissioners as a whole

• The Audit Committee has separate and distinct responsibilities in three areas of risk management oversight: o Reporting

o Internal Control Structures in Place

o Auditing (external and internal)

13

Board/Audit Committees Roles and Responsibilities (continued)

• Understand and discuss issues and judgments related to balance sheet, key components comprising net earnings and financial reporting

• Assess effectiveness of risk management process used by management

• Review and understand system of internal controls

• Cause a timely independent auditors’ review of financial statements

• Understand and address financial reporting issues:– Liquidity and going concern

– Disclosure adequacy

– Specific financial statement risk

– Materiality

– Changes in internal control

– Unusual transactions

– Related-party transactions

14

Board/Audit Committees Roles and Responsibilities (continued)

• Ensure highest-quality financial reporting– Management’s tone at the top

– Risk areas

– Challenge estimates and judgments

– Changes in the business environment

– Critical accounting principles

– Unrecorded audit adjustments

– Related parties and disclosures

– Financial statement users

– High-quality reporting

– Understand and provide oversight in “gray” areas of accounting and reporting

15

The Board and Audit Committee should ensure they are asking the right questions related to risk management efforts within the organization.

• To what extent are you involved in the ongoing processes of strategic planning and risk management? How is your strategic environment changing?

• What new business risks and opportunities are appearing, how are they being managed and what, if any, modifications in strategic direction should be adopted?

• Are the types of risk that are acceptable for the District to bear defined?• How do you monitor management’s systems and processes for managing the

various types of business risk (e.g., strategic, operational, financial, reputation)?• What is your early warning system?• How do you gain assurance that key risks are being managed appropriately?• What kind of risk information do you receive to monitor and assess organizational

performance?

Audit Committee ~ Are You Asking the Right Questions?

“With integrity on the line and

rising shareholder

expectations, companies are

fine-tuning their risk-

monitoring systems and boards are

more accountable than ever.”

Corporate Board Member

Magazine

16

Best Practices for Commission Consideration

• Consider establishment of a separate Audit Committee, or ensure that the role and responsibilities are covered by the Commission as a whole to perform the following functions:– Oversee the accounting and financial reporting processes

– Oversee the audits of financial statements

– Input to appointment and oversight of the auditing firm

• Board/Audit Committee should hold periodic private meetings with management, external auditor, and internal auditor

• Board should continually receive education on risk management, internal control considerations, and the appropriate accounting treatment for significant transactions and revenue recognition pertinent to their industry; develop thorough understanding of issues

• Ensure that organization has a strong structure of internal control in place complete with antifraud measures

17

Questions?

Laurie Tish, PartnerNational Practice Leader, Government ServicesMoss Adams LLPlaurie.tish@mossadams.com

18

Powering our way of life.

Commission Presentation December 11, 2018

Community Engagement Activity Report

External Affairs & Communications Operating Unit

Vision & Top 5 Goals:1. Customers, employees & policy leaders

understand what the utility is doing and why.2. We have a clear, unified & powerful voice in

local, regional & national forums.3. We know how a key issue impacts the PUD & its

customers with data, research & analysis.4. We are focused on the highest value work.5. Grant PUD is widely recognized as a trusted &

reliable “go-to” utility leader (Vision).

Operating Unit Goals align/support GCPUD Strategic Plan Objectives.

Stakeholder Relationship AssessmentOverview

Assessment Overview

Conducted: August - November, 2018 By: Bourke Business Intelligence (BBI) Objectives:

Identify and prioritize specific service needs in an effort to improve relationships and performance with customers and stakeholders.

Obtain baseline data to measure current and future performance trends, and effectiveness of ongoing strategies and tactics.

Provide a gap analysis through actionable data that will allow the PUD to focus future efforts on the highest valuable work to narrow and eliminate identified gaps.

BackgroundAssessment Design

Design & InterviewsTasks Description1. Project Preparation Design action plan, calendar, methodology & participants.2. Focus Interviews

(internal)Interviews w/ a cross-section of District staff – Gather understanding of customers and business issues (5 total).

3. Focus Interview(external)

Interviews w/ cross-section of customers and stakeholders (12 total).

4. Assessment Design Based on focus interviews, design “gap assessment” questionnaire of 15-20 questions (plus 2-3 open ended).

5. Interview Administration

Conduct individual telephone interviews w/ a cross-section of customers and stakeholders (60-65 total).

6. Data Analysis BBI compiles and analyzes the data.7. Findings & Next

StepsPresent summary of findings and next steps.

Questionnaire

Two sections each with 20 questions – Ten point scale: Section I: Importance of specific factors Section II: PUD Performance on specific factors

One summary question regarding overall satisfaction –Four point scale.

Two open ended questions to conclude the interview.

Participants

Total number of interviews: 58 Total number of organizations: 54 On record: 100%

Participants

FindingsOverview of Results

Overview of Results

The assessment addresses key participant “satisfiers” Importance Scores

Average Score: 9.2 Range: 8.3 to 9.9

Performance Scores Average Performance: 8.4 Range: 7.7 to 9.0

Overview of Results

Overall “gaps” in low range for public utility Largest gap is 1.3

Many customers and stakeholders note improved relationships in recent years.

Staff knowledge and service focus are key distinguishing characteristics of Grant performance. 43% extremely satisfied 95% somewhat or extremely satisfied

FindingsStaff Interaction

Findings – Staff Interactions

Lowest average performance section Five of six factors below assessment average Wide range of opinions. All STDev at or above 1.5 Improved staff interaction noted in recent years Areas of concern: Speed of action, timeliness of responses not matching expectations.

Quotes:

“In the past, our relationship involved more contact with service reps. It'd be nice for them to actually set up appointments to check in. They have employees specifically focused on industrial customers, but it’d be nice even if they simply came to ask, ‘Are we meeting your needs? Is there anything we can do for you? Do you have incentives we can help you with?’ If we reach out, they do get back, but we used to have a monthly meeting with them. Even if it's quarterly or semi-annually, it would be appreciated.”

Quotes (continued):“For the most part, I'm extremely satisfied with the PUD; they do a damn good job. They’ve offered to analyze what I do and how I do it, and discuss my future needs. My only request would be better follow-through.”“I enjoy having a locally-operated PUD that provides reliable, inexpensive electrical power to our county, our businesses, and our farmers. Please keep up the good work. We need to move forward together.”“The PUD is super-responsive. We work well together, and they're very timely and give us really good service.In general, the folks we work with at the PUD are open-minded and really professional, and we appreciate our agreements and partnerships with them. Our working relationship has been great this last year.”“Getting back to us a little faster with the engineering and countermeasure for power outages would be good. Their response time [needs improvement]. Many places would say that [the current response time] is good, but for us, being a large power consumer, improved response time would always be good.”

FindingsCommunications

Findings - Communications

Above average performance for “forthright” communication. Many participants see opportunity for proactive messaging

from PUD. Political cycle causing confusion. There is opportunity for better messaging alignment of staff

vs. management. Areas of concern: Speed of responsiveness, inconsistent messaging

Quotes:

“The [other] issue they should focus on is communications. I'm fairly active in the community, and most people have no idea what the PUD does or how they do it. Their communication is not as effective as it could be. It's not because they don't try, but because people just don't pay attention until they're ticked off about something. They should better communicate the PUD's agenda and emphasize the positive things they do for the community before someone's mad at them.”

Quotes (continued):“I don't think there's any way to improve things. They're doing a hell of a job right now. We communicate all the time. That's different than in the past; if you had asked me three years ago, you would have gotten a completely different report. But now, they do a great job communicating. I have no suggestions [for improvement] other than to keep doing what they've been doing.”“I’d like to have clear and consistent messages about interests throughout and across the organization. It's not that they’re inconsistent, but it takes a bit to draw out their messaging sometimes: "Is this what you mean?", "Is this where you're going?", "Is this what you're looking for?" Drawing out the answers is harder than it should be. You eventually get their messaging, but I have to work for it harder than I do with other utilities.”“Their internal communication needs to improve. They're doing better, but we speak with several different levels at the PUD, from the director down to maintenance staff, and sometimes they don't all have the same message or, frankly, know what each other is doing. They need to figure out their internal communication among all 630 employees. I'm unsure what policies or procedures they need, but anecdotally I’ve heard that it's frustrating to some PUD employees, too.”

FindingsPublic Responsibilities

Findings – Public Responsibilities

Grant PUD matching up well with participant expectations of public responsibilities.

Majority of performance scores higher than assessment average.

Issues associated with crypto currency mining and energy use are on many participants’ minds.

Areas of concern: Meeting decarbonization goals Rate affordability vs. demands of growth Tension between emerging vs. historical businesses.

Quotes:

“Their Rate Equalization Process will be their big challenge. They're going to need to find a little more of a balance between the rate categories. They're getting closer to it, but there's still some inequities whereby in some cases they probably went a little further than was necessary in lowering rates. They've already addressed some of those issues and are gradually equalizing [rates]. I think that will be a continuing concern for all of their classifications of rate payers.”

Quotes (continued):“We have a number of challenges in the region with hydropower. Their big issue is going to beprotecting the dams. Let me put it that bluntly: They need to make sure that the existing hydro power infrastructure is protected.”“They should focus on getting the statewide carbon and renewable energy policies correct. I really appreciate Grant County PUD's forward-looking orientation as a utility. I appreciate how they embrace the future and find win-win solutions for the region that also work for their ratepayers. Grant County PUD is a really positive asset for our state and region, and I appreciate the work they do.”“[Grant County PUD should] continue to exert its leadership role in public policy issues affecting the entire region. Renewable portfolio standards (RPS) and the Columbia River Treaty are two example topics that stand out.”“The PUD continues to get beat up on any rate increases or who’s paying what in these differentclasses. They're fair, and the cost of how that service is delivered is fair. But we're in an electionseason, and it's just baffling how many people don't really know how good they have it, and how good this PUD is.”

Next StepsUse findings to narrow gaps

Preliminary analysis: While stakeholders are overall satisfied with Grant PUD’s

operation, some areas to address Overcome communication gaps. Seek greater public input in the early stages of policy

development. Promote better understanding between customer groups. Continue to provide a unified voice for public power and

hydro industry and look for greater opportunities to provide leadership.

Areas of emphasis: More face-to-face meetings with stakeholders

Establish more regular check-in meetings with local elected officials and key customer groups.

Consistent and accessible informational material for customers and employees Utilize all channels of communication available to educate customers and

employees with the same consistent messages about PUD policy.

Provide even greater opportunities for customer input into policy. Proactively engage customers to seek their input on key issues so their

preferences can be considered in policy development.

Powering our way of life.